Employers decide whether workers experience change as a ‘cliff’ or a ‘ramp’
SINGAPORE’S 2026 Budget will likely be remembered as a defining moment in the country’s artificial intelligence (AI) journey.
It paired ambitious incentives to accelerate AI adoption with substantial investments in skills, worker assurance and lifelong learning – signalling the Republic’s intent to shape how AI is deployed, responsibly and at speed.
Even as policy moves decisively, effects of disruption in the labour market are starting to be felt. A 2025 Ipsos survey found that half of Singaporeans believe their roles could be replaced by AI. These fears are likely being shaped by visible, high-profile restructuring decisions across the global economy.
Initially concentrated in global tech firms, which laid off 246,000 workers in 2025, this pattern is now accelerating and spreading across industries. In labour markets undergoing rapid transition, many workers may not simply “find another job”.
But public policy alone cannot carry the full weight of this transition.
Singapore has invested heavily in skills and incentives. What remains under-designed in the AI conversation is the organisational layer – the decisions made inside firms about how work is redesigned, how automation is implemented, and how people move when roles change or disappear.
Employers stand at the front line of the AI transition. They decide whether workers experience change as a cliff – an abrupt, severing of ties, or as a ramp – a structured transition that preserves dignity, trust and future contribution.
This distinction matters more than is acknowledged. Layoffs are frequently treated as a financial or operational lever, a means of managing short-term economics during transformation. But research shows that repeated or poorly managed job cuts erode morale, reduce productivity, and increase voluntary turnover among those who remain.
More subtly, they also undermine automation itself.





